Federal Reserve System

The central bank system of the United States. The Federal Reserve regulates the monetary policy of the United States, especially by setting the discount rate and the fed funds rate and by buying and sellingU.S. Treasury securities. It consists of 12 regional banks that operate under the guidance of a Federal Reserve Board, whose seven members are appointed by the President of the United States. The Federal Reserve System has the authority to printmoney, a controversial measure both now and at the time it was founded. All federally-chartered banks must belong to the Federal Reserve System and purchase a certain amount of stock in the Federal Reserve bank in charge of their particular regions. The Federal Reserve System was established in 1913.

Federal Reserve System

The independent central bank that influences the supply of money and credit in the United States through its control of bank reserves. Federal Reserve actions have great impact on security prices. For example, restriction of bank reserves and lending ability in an attempt to restrain inflation tends to drive up interest rates and drive down security prices over the short run. Also called Fed. See also Federal Open Market Committee.

Federal Reserve System.

The Federal Reserve System, sometimes known as the Fed, is the central bank of the United States.

The Federal Reserve System, which was established in 1913 to stabilize the country's financial system, includes 12 regional Federal Reserve banks, 25 Federal Reserve branch banks, all national banks, and some state banks. Member banks must meet the Fed's financial standards.

Under the direction of a chairman, a seven-member Federal Reserve Board oversees the system and determines national monetary policy. Its goal is to keep the economy healthy and its currency stable.

The Fed's Open Market Committee (FOMC) sets the discount rate and establishes credit policies. The Federal Reserve Bank of New York puts those policies into action by buying and selling government securities.

Federal Reserve System

Often called “the Fed,”it is the central bank of the United States,created in 1913.It regulates credit through the interest rates it charges for short-term loans to financial institutions,supervises and regulates banking institutions,and provides advisory services to the government.Funding comes from interest on investments,fees for services to depository institutions,and interest on loans.The public usually comes into contact with the Fed in two ways:When the Federal Reserve chairman announces interest rate changes for loans to member financial institutions,almost all financial institutions change their interest rates within days afterward.In this way,the Fed controls the cost of credit to consumers.Additionally,it provides a central clearinghouse for checks drawn on different banks across the nation, making it possible for your bank in your home town to give you credit for a check drawn on another bank on the other side of the country.

The Federal Reserve Banks have always been positioned to offer all financial institutions, large and small, access to quality check imaging services and we are very excited to be work with them," said Mark Craig, General Manager of CheckClear, LLC, the owner and operator of the Endpoint Exchange Network.

The Federal Reserve Banks announced on June 28, 2005, changes to cash services that are intended to improve operating effectiveness by providing cash services at some locations using different distribution methods.

Moreover, mainstream economists warn that when the Federal Reserve tried to ``fine-tune'' the economy in an effort to stimulate growth during the 1970s it helped set off an inflationary spiral that was brought under control only after a long and painful recession in the early 1980s.

Any politician who dares to become a critic can count upon damaging attacks from both editorial writers and news reporters, accusing him or her of "political meddling" with the non-political Federal Reserve.

A notice of suspension and prohibition was issued under a provision of the Federal Deposit Insurance Act that authorizes the Federal Reserve Board and other bank regulators to limit the activities of bank officials who have been charged with certain criminal offenses pending the resolution of the charges.

But Greenspan, who is normally treated with considerable deference when he appears before Congress, came in for sharper than usual questioning about the congressional report on the Federal Reserve, which was compiled over the past two years by the nonpartisan General Accounting Office and issued Monday by two Democratic senators, Byron Dorgan of North Dakota and Harry Reid of Nevada.

The Federal Reserve System announced on April 18, 2005, that it has redesigned its financial education web site to increase the use of Federal Reserve educational materials and promote financial education in the classroom.

In a rare independent examination of the Federal Reserve Board's operations, a congressional report issued Monday criticized the secretive central bank's management of its own finances, suggesting that it could spend less and return billions of dollars to the treasury.

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